HeroMotoCorp revenue seen rising 1.2% in Q4: Report

Hero MotoCorp will report its Q4 earnings today.

According to a research report by Choice Broking, Hero Motocorp, is expected to report neutral growth for the quarter ended March 2015 due to discontinuation of royalty payments to Honda. Its revenue is seen rising 1.2 per cent during January-March quarter though volumes declined 0.9 per cent due to weak rural demand.

Operating profit of the company may fall 9.6 per cent year-on-year (y-o-y) leading to which margin may decline 146 basis points to 13.34 per cent compared to previous quarter. Hero has consistently been losing market share.

A research report by Angel Broking said, "The margins, however, would improve 170 basis points sequentially due to evening out of marketing expenses and increase in the excise duty which would have favourable impact on pricing for the products rolled out from the tax-free Haridwar plant. Expiration of one-time royalty payment to Honda, Japan would boost profitability despite the flat EBIDTA growth. We expect the net profit to grow 20 per cent y-o-y to Rs 664 crore."

For the quarter ended December 2014, the company registered net profit of Rs 582.98 crore, up 11.12 per cent, against Rs 524.66 crore in the corresponding quarter a year ago.

At 2.30 pm, the share price of the company was trading at Rs 2,352.35, up 1.14 per cent, against its previous close of Rs 2,325.95 on May 6.